A mere 1 per cent increase in licensed software usage can generate almost $1.3 billion in economic output against a $554 million from a similar increase in pirated software intake

As technology advances and high-speed internet connects the world, software piracy has moved from the streets to online. Today, public and private organisations are dealing with massive onslaughts of malware and inappropriate online content. Over half of the world’s personal computer users admit to using pirated software.

According to a study by the Business Software Alliance (BSA), a mere 1 per cent increase in licensed software usage can generate almost $1.3 billion in economic output against a $554 million from a similar increase in pirated software intake. It’s clear that increasing use of genuine licensed software has a greater impact on the domestic economy, and reports like these illustrate the magnitude of the damage that piracy is causing.

Not everyone may be aware that in addition to being illegal, pirated software may also threaten your professional reputation, put your data and privacy at risk, and waste your money. There are many sectors that tend to use more pirated software — for instance, small-medium businesses, media and entertainment, pharmaceuticals and the education sector.

But there are also companies, associations and government bodies that are taking proactive steps in prevention of software piracy. Companies that are serious about curbing piracy work closely with partners who focus on preventing piracy through education and legal enforcement. Trade partnerships with the Business Software Alliance and the Anti-Piracy Division of the Software & Information Industry Association (SIIA) trade associations help in curbing the distribution and use of pirated software.

These organisations act as industry watchdogs to identify and prosecute offenders, create legislation to protect software manufacturers, provide tools to identify unlicensed software, and offer useful information to help organisations stay compliant. They work to educate individuals and businesses. They have a highly experienced legal team to answer product and policy questions.

They provide detailed guidelines on how to identify and avoid pirated software and encourage members to adopt genuine licence use by offering them an attractive value proposition.

Here are some of the steps software companies can take to tackle piracy:

Educate customers: It is important to inform customers of the hazards of using pirated products. Using virus-infected software can lead to problems right across a company’s supply chain, and ultimately even hamper innovation and business growth

Offer attractive pricing options: One of the key reasons users go for pirated software is the price tag that genuine software comes with. It makes sense to have a flexible model where users can select specific software from a bundle and pay only for that. The Software as a Service (SaaS) model offers this kind of customisation option. Also, provide payment options for users such as easy EMIs, exchange offers and discounts

Partner with the government: Work with the Government to provide subsidised rates on software. This will help reduce the price of software products, making them affordable for users. Join hands with industry bodies such as Nasscom and BSA in their drive to prevent piracy and create awareness

Pirated products enjoy mass appeal as they are cheaper than the original and attract the price-conscious segment of the market. The clear message to companies here is, drop the price of the new product or adopt cost-effective technology models such as cloud to make software easily available.